Showing posts with label Global Markets Applaud Bernanke. Show all posts
Showing posts with label Global Markets Applaud Bernanke. Show all posts

Thursday, November 4, 2010

Global Markets Applaud Bernanke

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LONDON -- Major stock indexes in Europe and Asia climbed on Thursday after the Fed announced a $600 billion bond repurchase program, aimed at stimulating the U.S. economy at a time when interest rates are already close to zero.

It came even as markets had been pricing in Ben Bernanke's new round of so-called quantitative easing for several weeks, while players like PIMCO's Bill Gross criticized the plan.

Over in Asia Japan's Nikkei gained 2.2% while Hong Kong's Hang Seng index rose by 1.6% on Thursday after the plan was announced on Wednesday evening.Europe's Stoxx 50 index rose by nearly 2% while London's FTSE 100 was up by 1.8% in late morning trading. London was led higher by minerby Societe Generale.

European bond prices fell on Thursday. Germany's 30-year and 10-year bunds fell in price, with the 30-year yielding 2.97%, up from 2.85% on Wednesday. British 10-year gilts also fell in price, and yielded 3.04%.

In currencies, the euro gained against the dollar to buy $1.424, up from $1.413 on Wednesday, while the pound rose slightly against the greenback to buy $1.618.